Having won its legal battle with the SEC, Ripple continues its innovative efforts. Currently, Ripple is considering adding a staking feature to the XRP Ledger.
Ripple is discussing introducing a staking feature for XRP Ledger (XRPL) to increase XRP’s use in the decentralized finance (DeFi) space, according to Decrypt.
RippleX Senior Director of Engineering J. Ayo Akinyele said in a recent blog post that introducing staking to the XRP Ledger could improve network security by incentivizing long-term participation and rewarding users who help maintain consensus.
“Considering how XRP’s usage can expand with new features, the need for staking naturally arises.
Staking can incentivize long-term participation and provide rewards to participants who help maintain consensus, which can strengthen network security.”
The introduction of staking has been noted to have the potential to increase utility through increased network security and participant rewards.
However, it was also stated that it is difficult to adopt in the short term due to technical difficulties and risks.
Akinyele stated that the XRP Ledger was initially designed to provide efficient global value transfer and liquidity, particularly for cross-border payments, and that this concept will help XRP maintain its dominance once it is adopted by digital asset treasuries and exchange-traded funds.
However, the introduction of staking would challenge fundamental principles of the ledger, such as the Proof of Relationship mechanism, which prioritizes trust and stability over financial incentives.
XRP is trading at $2.13, according to CoinMarketCap data.
*This is not investment advice.